Joe and Bill Are the Same Age and Starting Their

question 39

Multiple Choice

Joe and Bill are the same age and starting their careers.Each plans to retire at age 65 and each wants to have $600000 in his RRSP account by then.If they both get seven percent annual return on their RRSP savings,which one will be closer to reaching his goal?

• A)Bill if he starts saving $800 a month when he is 45 years old
• B)Joe if he starts saving $200 a month when he is 25 years old
• C)Bill if he starts saving $1000 a month when he is 45 years old
• D)Joe if he starts saving $150 a month when he is 20 years old

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Definitions:

Unmarried Teen Parents

Adolescent individuals who become parents outside of marriage, often facing unique social, economic, and emotional challenges.

Payments

Transactions involving the transfer of money or goods from one party to another as compensation for services rendered or products purchased.

Marx

Karl Marx, a 19th-century philosopher, economist, and revolutionary socialist who developed the critical theory of Marxism, analyzing the effects of capitalism on society.

Weber

A German sociologist, economist, and political scientist known for his theory on the process of rationalization in Western society.